Lightyear Corp. closes purchase of technology start-up Chain Inc.Sep 10, 2018 at 22:53
Lightyear Corp., the firm that built to support the decentralized Stellar platform, has acquired Chain Inc., the developer of a private blockchain.
The acquisition brings forth a new entity, Interstellar which will migrate Chain’s customers and financial products onto Stellar’s global public ledger.
Chain Chief Executive officer Adam Ludwin said the transaction will enable the Chain’s previous customer base to issue, exchange and manage assets at the open Stellar system.
“We were looking for a way to help our customers move the projects that we have been working on from a private network to a public one,” Ludwin was quoted in a Reuters report on Monday.
Negotiations for the deal began as early as late last year.
“When we started a few years ago, our customers were not ready for a public network. Fast forward to three years, they’re willingness has gone up, and the maturity of the public networks has changed a lot,” added Ludwin, who will be Interstellar’s CEO.
Some 60 people will be tasked to man Interstellar’s headquarters in San Francisco and an office in New York City. Its products will comprise of StellarX, the newly revealed trading marketplace for assets, among others.
Headquartered in San Francisco, Chain is considered one of the major startup-players in the blockchain space for enabling organizations to build better financial services.
The company has raised over $40 million from leading financial industry players Visa, Citi Ventures, Nasdaq, Capital One, Fiserv and Orange. The investments were meant to explore other potential areas where digital payments would be of great use.
Although company officials did not reveal the transaction’s monetary value, among other financial information, Reuters reported that Chain investors “were cashed out.”
“The deal turned out to be a very good outcome for our investors,” said Ludwin.
Earlier estimates of the deal pegged its value at some $200 million–which, if true, puts it as one of the biggest deals made in the history of blockchain mergers and acquisitions.